GBI RURAL BANK RECEIVES COMMENDATION (PAGE 29, NOV 14)

THE Bank of Ghana (BOG) has commended the Gbi Rural Bank Limited at Hohoe in the Volta Region for performing so well as of the end of its first year of operations in spite of the global financial crisis that hit the economy last year.
At the first annual general meeting of the bank at Hoho , Dr Kofi Wampah, First Deputy Governor of the BOG, said the bank was able to increase its deposit base from an initial GH¢350,648 to GH¢1,833,000, constituting an increase of 44 per cent.
He said its total assets also increased by 217 per cent from the GH¢580,000 it began operations with to GH¢1,833,282, and described it as a remarkable achievement for a new bank.
The bank went into operations in March 2008. As of the end of December 2008, its total assets stood at GH¢580,000.00 with a mobilised deposit of GH¢351,000.00. A total of GH¢282,000.00 was granted as loans.
Dr Wampah challenged the board and management to strive hard to achieve more glory and commended the staff for their commitment and dedication to duty. The Deputy Governor however urged the bank to ensure that the beneficiaries of the enlarged loan portfolio which rose by 280 per cent from GH¢282,000 to GH¢1,071,000 to repay their loans on schedule to ensure that the bank remained strong.
He cautioned the bank to remain dedicated in their service to their customers and come out with products that are customer focused in order not to be left out of the current keen competition in the banking industry.
In a speech read on his behalf, Mr Eric Osei Bonsu, Managing Director of ARP Apex Bank Ltd, commended the bank for having rated 70th out of the 130 rural banks in the country, and urged them to step up their performance since there was more room for improvement.
“This will require innovative approach to banking, quality customer service delivery, enhanced deposit mobilisation drive and pursuance of aggressive but prudent credit operations”, he said.
Mr Osei Bonsu stressed that they should strive to adopt marketing strategies by creating products that would enable them to “ go where the clients are stationed and speak their language”.
He urged the bank to increase its share capital base which now stood at GH¢177,000 even though it was above the BOG minimum capital requirement.
The Manager of the Gbi Rural Bank, Mr Kwame Dzotsi, said the staff and management were challenged by the ever increasing competition in the banking industry and the global financial crisis to continue to adopt appropriate strategies to enhance competitiveness and survival in the industry.